Paul Boghosian, 50, of St. Louis, was arrested in St. Louis while meeting with the undercover agent to accept an approximately $2.5 million loan and to arrange payment of a $500,000 bribe in exchange for the loan, according to the U.S. Attorney for the Southern District of New York.

A federal complaint unsealed today said Boghosian controls Hawaiian Investment Partners Group LLC, which has submitted one of two competing bids to take Hawaiian out of federal bankruptcy protection after two years.

A two-day hearing is scheduled to begin tomorrow in U.S. Bankruptcy Court to consider the reorganization plan offered by the leading group hoping to take over Hawaiian, RC Aviation LLC. In June, RC Aviation's parent, Ranch Capital LLC, purchased the majority share in Hawaiian's parent company, Hawaiian Holdings.

RC Aviation's plan has the support of Hawaiian Holdings, Hawaiian's committee of unsecured creditors and Hawaiian's bankruptcy trustee, Josh Gotbaum.

Another hearing on Hawaiian Investment Partners Group's plan is scheduled for Friday.

The federal complaint alleges that Boghosian made several misrepresentations to the Bankruptcy Court regarding HIP's ability to provide approximately $300 million in new equity funding and financing to take over Hawaiian.

Robert Konop, a Hawaiian Airlines pilot who helped put together HIP's plan, told The Advertiser in January that it would receive $350 million in financing from two Native American investment funds, E&M Trust and Hachador No. 3.

Konop, who flies regularly for Hawaiian, did not respond to telephone calls or e-mails this morning. The group's Honolulu attorney, Randal Yoshida, declined to comment this morning.

The federal complaint alleges that Boghosian agreed to pay the $500,000 bribe to the agent who was posing as a hedge fund manager. In return, according to the complaint, Boghosian would receive about $2.5 million from the agent's hedge fund.

On Nov. 11, Boghosian and other HIP principals told the Bankruptcy Court that HIP would provide at least $200 million in new equity funding for Hawaiian and that HIP had a commitment for an additional $100 million line of creditor for Hawaiian, according to the complaint.

Boghosian submitted affidavits to the Bankruptcy Court indicating that he had $500 million from the E&M Trust, according to the complaint, along with documents that purported to reflect cash balances in accounts controlled by the E&M Trust.